Pen Argyl property owners to face tax increase

School board includes 7% hike in preliminary budget, but that amount is far from certain.

January 17, 2007|By Tom Coombe Of The Morning Call

Property owners in the Pen Argyl Area School District will pay a higher property tax this year. How much higher? That depends on how much the education funding the state puts in its 2007-08 budget.

For now, Pen Argyl area taxpayers will see a 7 percent increase in their bill this year, according to the district budget, unveiled Tuesday night for the public and the school board. The $23.1 million budget raises the tax rate from 36.85 mills to 39.5 mills. That means the owner of a property assessed at $50,000 would pay a $1,975 tax bill, up $132 from last year.

"It is of vital importance to keep in mind that this is indeed a preliminary budget," Superintendent William Haberl said.

The numbers in it could change, he said, with the state's contribution.

Business Manager Walter Schlegel told the board he has budgeted $4.1 million in basic education funding from the state, a 2 percent increase from the previous budget.

School boards in Pennsylvania are reviewing their budgets earlier than usual this year because of the state law known as Act 1, which requires districts to get voter approval if they raise taxes above a state-mandated index.

Pen Argyl's index is 4.4 percent, meaning the district either would need to put the tax increase on a ballot or apply for an exemption from the state Department of Education. The district qualifies for four possible exemptions, Haberl said.

This is the earliest Pen Argyl has ever reviewed a budget, Schlegel said, noting that "there's a lot of time for adjustment."

But the idea of having to come up with a spending plan without knowing how much the district will get from the state angered some board members. Robert Rutt was one of them, saying that working without final numbers exposed the district to "embarrassment."

Board President Bryan Scott said he was appalled by the amount of money the district was spending on charter schools, which went from $133,793 to $244,395 -- an 83 percent increase.

With that kind of money, "we could hire four well-paid teachers for basically a classroom of students," Scott said.